The homebuyer tax credit extension approved last fall by Congress was given another 3-month extension this week. However, it might not be the type of extension you were hoping for if you recently joined the housing market.

This time the tax credit extension was voted as a 3 month relief to homebuyers who were tardy on closing their purchases. In order to take advantage of the homebuyer tax credit, you still must have had a signed purchase agreement by the original tax credit extension date of April 30, 2010.

With this new extension, you now have until September 30, 2010 (vs. June 30) to close on the purchase of the home. This legislation was forced, and overwhelmingly approved because it is estimated that as many as 180,000 homebuyers would not have qualified for the tax credit even though they had a signed purchase agreement by April 30, because lenders were inundated with buyers rushing to close their sale and qualify for the tax credit.

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